If you’re looking at an acquisition, a divestiture, a joint venture or possibly an organic expansion, you’ll need a customized Excel financial model that is dynamic enough to handle your venture’s or asset’s variables.
The benefits of a customized Excel financial model can be categorized into three segments.
An Excel Financial Model Gives You Justification
A financial model helps you justify your investment decision to your stakeholders. The model will allow you to rank alternatives and to gain valuable outputs such as net present value, internal rate of return, profitability index, and return on investment; metrics that are needed in your white paper or your investment presentation to your stakeholders. Most importantly, a customized financial model allows you to have a deeper insight into your project and a strong confidence level in your financial decisions.
Gain a Robust Analysis with an Excel Financial Model
A customized financial model allows you to have a robust analysis of your investment decision and allows you to test different scenarios that could influence your investment decision.
As a small or growing business owner, you want to understand the impact that uncertainties will have on your project. A customized Excel financial model lets you test assumptions and play what if scenarios. If a financial model is designed well, the functionality of the model will be encapsulated on one page that includes key inputs and key outputs.
With a Darby Finance Excel Financial Model, inputs are laid out in a way that’s very simple and easy to use, so not only you, but other key stakeholders can utilize your financial model to review analyses and make better financial decisions.
Negotiate Better with an Excel Financial Model
A customized financial model is going to help you bring your ‘A’ game to negotiations. If you don’t have a customized financial model, you’re either going to leave money on the table or overpay depending on what side of the table you’re on.
As a developer, an owner, or a potential investor, a customized financial model will help you understand what you’re giving up and the immediate impact your evaluation will be into other aspects of the project.
Don’t Make Financial Decisions Without a Customized Financial Model
After a combined four decades of supporting Fortune 50 companies, Darby Finance knows what data points investors and key stakeholders look for when deciding to support an investment or venture. Using a discounted cash flow model as a base, Darby Finance creates an Excel-based financial model to handle all variances of your particular deal and is flexible enough to handle changes such as tax laws and weather events as they arise.
An Excel-based financial model is going to help you justify your investment decisions, have a much more robust and better analysis, and have more confident negotiations, helping you keep more money in your pocket or potentially paying less for a particular asset.
About Darby Finance – A Leading Financial Consulting Firm
Darby Finance helps our clients make better financial decisions by transforming complex data into a compelling and easy-to-understand financial story. We work alongside our clients to develop customized financial models, valuations, and sophisticated investor presentations while utilizing more than 40 years of experience in energy, finance and investor relations.